iPhone 3G BOM: $100?
June 16th 2008
Quoting a Portelligent report, EETimesreports that the bill of materials (BOM)--about $100--to build the iPhone 3G could be a bit more than half that of the original model ($170).
"Gen2 iPhone pricing is aggressive enough that it made me think Apple's really taking the gloves off on this one," said David Carey, president, Portelligent. "They are probably not as worried about iPhone hardware profits as they are about getting a piece of the action on service revenues and getting more Macs in homes and offices all around the globe."
His cost estimate is based on a number assumptions--Apple has built the iPhone 3G around chips from Infineon and Samsung.
The iPhone 3G, which will go on sale in 22 counties on July 11, uses the HSDPA version of W-CDMA, a standard which supports a minimum of 1.5 Mbits/s and up to 7.5 Mbits/s on some chips sets, including one from Infineon.
Editor's note: There have been concerns that Apple had ceded too much control and profit to AT&T in the latest contract renegotiation. However, if the carrier does indeed subsidize the iPhone 3G to the tune of $200 ~ $400 per handset, then it would seem clear that Apple will make out just fine.
Moreover, given the breadth of the iPhone rollout and the anticipated unit volume, at least 10.5 million this year, it becomes apparent that Apple will do quite well...
What's your take?
